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One Thing is Clear: AI Makes a Lot of Business Software Look Awfully Expensive Today. Is Deflation Coming?

SaaStr

There have been so many price increases since 2021, many apps are 40% or more expensive than they were in 2021. To raise prices even more? DeepSeek has, at least in theory, cut the price of AI for SaaS as much as 90% overnight. And in Classic B2B you are raising my prices this quarter again ? But will it hold?

AWS 282
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Clouded Judgement 12.1.23 - Net New ARR Starts to Rebound + AWS ReInvent Recap

Clouded Judgement

Subscribe now Amazon ReInvent This week Amazon had their annual AWS ReInvent conference. ” AWS fully embracing the breadth over depth approach. Looking at the mid to long term, we feel very optimistic about the outlook for strong AWS growth. Follow along to stay up to date! This year, there was tons of experimentation.

AWS 299
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Search at Intercom: Building our Elasticsearch cloud on AWS

Intercom, Inc.

For this reason, we chose to run exclusively on AWS and wherever possible, we make use of battle-tested AWS services, be it RDS Aurora for our relational databases, the Simple Queue Service (SQS) for our async workers or ElastiCache for our caching layer. SSM executes the commands using an on-instance daemon agent called AWS SSM Agent.

AWS 249
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The Capex Conquest in the Cloud

Tom Tunguz

Cloud Capex in Q1 AWS $14 billion Azure $14 billion Google Cloud $12 billion These are not one-time investments, but part of a broader trend that started to occur after the introduction of GPT 3 in mid-2020 Amazon was the first to invest significantly. “Moving to AWS. 8 percentage points increased margins in a quarter is titanic.

Cloud 288
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The Top 10 SaaStr Posts of 2020

SaaStr

3. “Atlassian and AWS Say: Maybe Worry a Little Bit. Atlassian and AWS, two of the greats, may hold a clue: Atlassian and AWS Say: “Maybe Worry a Little Bit” 4. “A Framework For Your First SaaS Sales Comp Plan” A SaaStr Classic, still going strong in 2020. With the actual cold emails.

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The Battle for AI Gravity

Tom Tunguz

AWS & others have stopped charging to move data. AWS cut prices more than 100 times in its first five years. Plus, data movement is less expensive than in the previous era. New data formats like Iceberg simplify data movement. Both have decreased switching costs.

AI 291
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Is it Really ARR? In 2021+, Yes. As Long As NRR is > 100%

SaaStr

We could have picked many B2D services, like Twilio or others, too, which have primarily or substantial transaction pricing too. First, Snowflake rolls its large customers into fixed comittments (as does AWS and many others), and bills them in advance.